SA power secure under carbon tax

South Australia's electricity supplies are secure despite the carbon tax likely to lead to the shutdown of a major power station, the state government says.

Alinta Energy is likely to close the brown-coal-burning Playford Power Station at Port Augusta, which has been running since 1963.

The company says it will take part in the closure process set up by the federal government, offering incentives for the most dirty power stations to go.

But SA Energy Minister Michael O'Brien said he had met with Alinta Energy chief executive Jeff Dimery in Adelaide on Monday and received assurances the company's nearby Northern Power Station would continue to operate.

"As previously foreshadowed, the older Playford Power Station is likely to close because it is one of the highest emitters of carbon dioxide in Australia per megawatt of electricity generated," Mr O'Brien said.

The minister said Alinta planned to build a gas turbine to replace the Playford plant.

"I expect there will be a seamless transition from coal to gas and there will be no loss in baseload capacity," Mr O'Brien said.

Mr Dimery said the company was pleased the carbon tax legislation would provide a level of protection for the company's workers and the local community.

"With fair and equitable treatment of our assets, Alinta will be able to ensure security and reliability of energy supply for our customers," he said.

Mr Dimery said as the timing of the process to close the Playford plant became clearer the company would actively engage with employees, unions, the Port Augusta community and all levels of government.

"We are confident, that due to the integrated nature of the Playford and Northern Power stations at Port Augusta, we will be in a strong position to keep job losses at a minimum," he said.